Altcoin Season Update for Crypto Enthusiasts 💰
Bitcoin has been receiving substantial market support due to the rising demand triggered by a successful run of a spot BTC ETF.
Is the Altcoin Season Over? 📉
Altcoin season, or “altseason,” is a phase in the cryptocurrency market where altcoins exhibit significant outperformance compared to Bitcoin. The two main indicators of altseason are Bitcoin’s dominance and the price performance of altcoins.
- Bitcoin’s dominance decreases during altseason as investors move their capital from Bitcoin to various altcoins
- A drop in Bitcoin dominance signifies that altcoins are gaining a larger market share
The decline in Bitcoin’s dominance was last observed earlier this year when it fell from 54% to 50%. However, it has since trended upwards, reaching 55% in the last month, marking the highest Bitcoin dominance since the March 2021 crash.
During altseason, altcoins typically see significant price surges, outpacing Bitcoin’s growth and signaling the onset of altseason. Investors diversify their portfolios into altcoins to seek higher returns, thereby driving up altcoin prices.
- When 75% of the top 50 altcoins outperform BTC over three months, it signifies an active and successful altcoin season
- Recent data shows that only eight cryptocurrencies have outperformed Bitcoin in the last 90 days, indicating the end of the altcoin season
This data suggests that the altcoin season may have ended prematurely this time.
When Can We Expect the Next Altcoin Season? ⌛
Predicting the timing of the next altcoin season is challenging due to the crypto market’s volatility and external factors from macro-financial markets.
- Historical patterns suggest that altseasons occur every six to eight months
- The most recent altcoin season began in January, and if the pattern continues, the next one could be expected around February 2025
Investors should remain vigilant of broader market trends and signals from macro-financial markets.
Hot Take: The Curtain Falls on Altcoin Season 🎭
The changing market conditions are not conducive to an altcoin season as Bitcoin continues to dominate. Stay informed and watch for potential shifts in the market that could signal the start of a new altcoin season in the future.
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